It is common for those who face bankruptcy to experience feelings of despair, rage, frustration and sadness. Those who find the need to file often worry about how they will be able to pay debts and live their daily life. They think they are stuck, but they really aren’t, and neither are you, thanks to the following tips.
You should avoid paying your taxes with credit cards and then immediately file for bankruptcy. Generally speaking, taxes are not a dischargeable debt. The delays caused by this sort of tactic could leave you owing the IRS a great deal in interest and penalties. The rule here is that if you can get the tax discharged then you can get the debt discharged. Thus, it doesn’t make sense to use a credit card when it is going to be discharged when you file for bankruptcy.
If you are truly faced with bankruptcy, avoid blowing your savings or retirement money, trying to pay off debts. Unless there are no other options, your retirement funds should never be touched. Your savings accounts offer valuable financial security so try to leave them intact.
Bankruptcy Petition
A key tip for those filing a personal bankruptcy petition is to always be completely honest in all documentation. Do not try to shield some assets or income from your creditors. This can get you in serious trouble and prevent your bankruptcy petition altogether.
Find a specialized lawyer if you are thinking about filing for bankruptcy. Filing for bankruptcy is complicated and there is no way you can understand all you need to know. An attorney specializing in personal bankruptcies can assist and make certain things are being handled correctly.
Stay abreast of new laws that may affect your bankruptcy if you decide to file. Bankruptcy law has changed substantially in recent years, and therefore you must understand how such changes may affect your situation. To learn about these changes, try contacting your state’s legislation office or checking their website.
It’s a good idea to meet with a number of bankruptcy lawyers before settling upon one. The majority of them offer free initial consultations. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. Interviewing multiple attorneys is a good way to find the best fit.
Your most important concern is to protect your home. Filing for bankruptcy does not always mean you will end up losing your home. There are mitigating factors, such as lose of value, or multiple mortgages. It can be worthwhile to understand the homestead exemption law to see if you qualify to keep living in your home under the financial threshold requirements.
If you are earning enough to cover your bills, don’t file for bankruptcy. The cost to your credit history far outweighs the simplicity of the easy-out bankruptcy. This is a hard pill to swallow for many.
Talk to an attorney about reducing your car payments so that you can keep your vehicle. Often, you can negotiate a lower payment through bankruptcy. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.
Pick the right time to file. Timing can be critical when it comes to personal bankruptcy cases. In some cases, you should file for bankruptcy right away, but in others, there may be reasons why filing quickly would be a bad idea. Discuss your particular situation with your bankruptcy attorney to determine the best time to file.
Keep the concept of shame out of your head if you are contemplating bankruptcy. This process is less that glamorous, and it makes most people lose their self-esteem. Wallowing in these emotions benefits no one, and only serve to harm your own mental health. To best deal with filing for bankruptcy, look for the positives in the situation.
Now that you know a little more about bankruptcy, this process should be much easier for you. Initially it can be troubling, but bankruptcy can be beaten. By using the advice that has been given to you, you can find a way to clear up your personal debt.
This is a limited-time offer. We are not able to guarantee availability if you wait!
